FxWirePro: Nikkei Daily Outlook

Asian markets pared some of its gains made today on account of declining Chinese market. China reacted to the recent trade tariff by imposing import tariff of $60 billion worth of U.S goods on Friday. Chinese market continuing its weakness for second consecutive weak and has lost more than 200 points from the high of 2915. It is currently trading around 2717.US market has closed slightly lower with Dow Jones at 25462 (0.54% higher) and S&P500 2840 (0.46% higher). USD/JPY which is the main indicator of geo political tension is trading slightly lower on rising trade war tension . US futures is trading flat with Dow Jones at 25484 (0.15% higher) and S&P500 2841 (0.12% higher). Nikkei is currently trading around 22503 0.18% lower.
 

USD/JPY is trading slightly lower after hitting high of 112.15 and is currently trading around 111.64 (0.02% lower).
 

On the lower side, index major support is around 22450 (55- day EMA) and any break below will drag the index down till 22380 (100- day MA)/22240/22000/21750.
 

The near term resistance is around 22650 and any convincing break above will take the index to next level till 22800/23050/23200.

It is good to buy on dips around 22350-400 with SL at 22150 for the TP of 23040.